Minnesota – Consulting services not subject to sales and use tax

October 2013


The Minnesota Tax Court found that consulting services relating to the implementation of enterprise software were not subject to sales tax, whether as a separate taxable service (fabrication labor) or as part of license fees paid for the software. Minnesota taxpayers purchasing or providing similar services should consider, consistent with this opinion, that implementation services may be distinct from taxable installation services even when performed by the software vendor.

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Peter Michalowski
National SALT Practice Leader
Tel: +1 (646) 471 5259

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